🏡 Underquoting in Real Estate: What Mornington Sellers Need to Know
Why Underquoting Matters
Selling your home is one of your biggest financial decisions. You expect your property to be marketed honestly, attract genuine buyers, and achieve the right price. But if your home is advertised too low, you may become a victim of underquoting in real estate.
In Victoria, underquoting is against the law—but it still happens. Many sellers don’t realise how damaging it can be, or what steps they can take to protect themselves.
👉 That’s why we’ve also created a video guide on underquoting. Watch it here for a deeper dive.
What is Underquoting?
Underquoting happens when a property is advertised at a price lower than the vendor (you) would accept, or below the agent’s reasonable estimate of its value.
The Law in Victoria
Agents must provide a Statement of Information (SOI) with every listing. It must include:
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A realistic price range (range no more than 10%).
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At least 3 comparable sales within the last 6 months.
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The median suburb price.
If the advertised range is below these figures, that’s illegal underquoting.
The Pitfalls for Sellers
Some think underquoting only hurts buyers, but it can damage your campaign too.
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❌ Wrong buyers – People who can’t afford your home fill your opens.
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❌ Frustration – Qualified buyers walk away when they feel misled.
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❌ Damaged reputation – Your property looks “cheap” or misleading.
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❌ Advertising waste – Money spent on the wrong audience.
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❌ Legal risk – Complaints and penalties from Consumer Affairs Victoria.
Some agents argue underquoting creates competition. But competition from unqualified buyers doesn’t lead to higher offers—it leads to disappointment.
👉 Our video explains these pitfalls in more detail.
How to Spot the Red Flags
If you’re concerned about underquoting, look out for these warning signs:
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Low price guides far below your expectations or local sales.
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No clear price – vague terms like “Contact Agent.”
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Pressure from your agent to list lower for “buyer interest.”
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Promises of huge traffic without talking about quality buyers.
👉 Watch our video to find out what to questions to ask your Agent.
How Sellers Can Protect Themselves
You’re not powerless. Here are practical steps to avoid underquoting:
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Do your own research – Compare recent Mornington sales online.
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Check the SOI – Look at the 3 comparable sales yourself.
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Agree on your bottom line – Document it with your agent.
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Approve all marketing – Don’t let ads go live unchecked.
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Keep records – Save emails and notes from pricing discussions.
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Choose an ethical agent – Reputation and transparency matter.
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Walk away if needed – You can request release from your authority.
👉 Want more detail on each step? Watch our underquoting video.
If You’re Not Happy With Your Agent
Sometimes, even with care, you might end up with an agent who isn’t transparent.
Your Options:
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Raise concerns in writing and ask for changes.
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Review your Exclusive Sale Authority to know your rights.
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Request a mutual release from the agreement.
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If needed, escalate to Consumer Affairs Victoria.
Why Choosing the Right Agent Matters
Underquoting often reflects the culture of the agency you choose. An ethical agent will:
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Provide transparent evidence of value.
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Market your home to genuine buyers.
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Focus on your outcome, not just numbers at opens.
At McNeill Real Estate, we pride ourselves on honesty and transparency. We believe sellers should feel confident that their property is marketed correctly, with no shortcuts.
📌 For the step-by-step guide and detailed examples, watch my full YouTube video below.
📞 Ready to sell? Contact one of our friendly team members at McNeill Real Estate today for advice and a free property appraisal.
Disclaimer: The contents of this video do not constitute legal advice, are not intended to be a substitute for legal advice and should not be relied upon as such. You should seek legal advice or other professional advice in relation to any particular matters you or your organisation may have.
